The Federal High Court in Yenagoa, Bayelsa State, has ruled on the disputed OML 46 which has been in contention between Halkin Exploration and Production Limited and the Bayelsa Oil Company Limited, reaffirming that the former- Halkin Exploration and Production Limited, as the rightful owner and operator of the Atala Marginal Oil Field, OML 46.
In his judgment, Justice Ayo Emmanuel dismissed the suit filed by Bayelsa Oil Company Limited, ruling that the case was statute-barred and that the plaintiffs lacked the legal standing to challenge the re-award of OML 46 to Halkin Exploration. The court further held that the plaintiffs failed to meet the required legal conditions before initiating the lawsuit, making their claim an abuse of court process.
Justice Emmanuel, citing Section 2 of the Public Officers Protection Act and Section 307 of the Petroleum Industry Act (PIA) 2021, which bar certain claims after a specified period, dismissed the suit by Bayelsa Oil Company in its entirety and reaffirmed Halkin Exploration’s legal ownership and operational rights over the Atala Marginal Oil Field.
Reacting to the ruling, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which filed an objection to the suit by Bayelsa Oil Company, through its counsel, Chikaosolu Ojukwu, S.A.N, said: “This judgment upholding Halkin E&P’s ownership of OML 46 marks a significant victory for the upstream oil and gas sector. This outcome underscores the seriousness and integrity behind the bidding and awarding processes of marginal fields and deep offshore assets.”
According to Ojukwu, the ruling is a further affirmation that under the leadership of the NUPRC’s Chief Executive, Gbenga Komolafe, the Commission has consistently upheld the rule of law, ensuring that all operators in the upstream sector comply with regulations.
“This commitment has contributed to improved crude oil production and promoted the Seven Pillars of Divestment, fostering sustainable development within the industry.”
The dispute dates back to February 25, 2003, when the former Department of Petroleum Resources (DPR) now NUPRC, awarded OML 46 to Bayelsa Oil Company Limited. However, on April 6, 2020, the Federal Government revoked the lease due to the company’s failure to develop the field and bring it into full production. For a long time afterwards, Bayelsa Oil Company failed to contest the revocation, and OML 46 was re-awarded to Halkin Exploration on July 7, 2021.
Seeking to overturn this decision, Bayelsa Oil Company filed a lawsuit on June 20, 2024, at the Federal High Court, Yenagoa Judicial Division, requesting a declaration that the re-award of OML 46 to Halkin Exploration was unlawful, null, and void.
On July 18, 2024, Halkin Exploration, represented by its counsel, Mr. Kehinde Ogunwumiju, S.A.N., filed a Notice of Preliminary Objection, challenging the court’s jurisdiction.
